FFM Exam Study Guide with
Complete Solutions 2025
Who can see your credit report? - ANSWER Creditors
Employers
Government agencies
Insurance companies
Landlords
Free credit reports are available if: - ANSWER -you have reason to believe your file
contains inaccurate information due to fraud
-you've been denied credit, insurance or employment within the last 60 days
-you are receiving public assistance
Establishing credit - ANSWER Open checking and savings accounts.
Having a cell phone and utilities billed in your name.
Get one card and make small purchases.
Ask a bank for a small, short-term cash loan.
Stay current on your student loans.
,Build a strong credit history by: - ANSWER Not getting overextended.
Fulfilling all terms of credit obligations.
Consistently paying on time.
Immediately notifying creditors if unable to pay.
Being truthful when applying.
Truth in Lending Act - ANSWER Requires lenders to disclose to credit applicants both
the interest rate expressed as a APR and the finance charges.
Laws on credit - ANSWER Limited liability on credit cards
-maximum liability of 50 dollars per card
If you notify the credit cared company within ______ you are not legally responsible for
any charges - ANSWER 2 days
Fair Credit Reporting Act - ANSWER Governs both lenders and credit bureaus.
Allows you to challenge errors on your credit report.
The bureau and lender must reinvestigate the information within 45 days.
, Equal opportunity act - ANSWER Unfair credit discrimination is unlawful
Credit CARD Act - ANSWER Credit Card Accountability, Responsibility, and Disclosure Act
-Protects consumers against some of the worst abuses by credit card lenders
-Protects under-21 consumers
-Rate increase protection
-Debt pay off transparency
Unsecured loan - ANSWER -also called signature loan
-Granted solely based on the good credit character of the borrower
Secured loan - ANSWER require a cosigner or collateral
Types of credit cards and charge accounts - ANSWER -Bank credit
cards -Retail charge cards (ex: Macys or Express)
-Travel & entertainment cards (American Express)
-Prestige cards (Platinum or Black Card)
-Affinity cards (M.A.D.D.)
Affinity cards - ANSWER standard bank cards with the logo of a sponsoring organization
on the face of the card
Complete Solutions 2025
Who can see your credit report? - ANSWER Creditors
Employers
Government agencies
Insurance companies
Landlords
Free credit reports are available if: - ANSWER -you have reason to believe your file
contains inaccurate information due to fraud
-you've been denied credit, insurance or employment within the last 60 days
-you are receiving public assistance
Establishing credit - ANSWER Open checking and savings accounts.
Having a cell phone and utilities billed in your name.
Get one card and make small purchases.
Ask a bank for a small, short-term cash loan.
Stay current on your student loans.
,Build a strong credit history by: - ANSWER Not getting overextended.
Fulfilling all terms of credit obligations.
Consistently paying on time.
Immediately notifying creditors if unable to pay.
Being truthful when applying.
Truth in Lending Act - ANSWER Requires lenders to disclose to credit applicants both
the interest rate expressed as a APR and the finance charges.
Laws on credit - ANSWER Limited liability on credit cards
-maximum liability of 50 dollars per card
If you notify the credit cared company within ______ you are not legally responsible for
any charges - ANSWER 2 days
Fair Credit Reporting Act - ANSWER Governs both lenders and credit bureaus.
Allows you to challenge errors on your credit report.
The bureau and lender must reinvestigate the information within 45 days.
, Equal opportunity act - ANSWER Unfair credit discrimination is unlawful
Credit CARD Act - ANSWER Credit Card Accountability, Responsibility, and Disclosure Act
-Protects consumers against some of the worst abuses by credit card lenders
-Protects under-21 consumers
-Rate increase protection
-Debt pay off transparency
Unsecured loan - ANSWER -also called signature loan
-Granted solely based on the good credit character of the borrower
Secured loan - ANSWER require a cosigner or collateral
Types of credit cards and charge accounts - ANSWER -Bank credit
cards -Retail charge cards (ex: Macys or Express)
-Travel & entertainment cards (American Express)
-Prestige cards (Platinum or Black Card)
-Affinity cards (M.A.D.D.)
Affinity cards - ANSWER standard bank cards with the logo of a sponsoring organization
on the face of the card
